Special Board of Aldermen 10-12-2021 Page 3
Alderman Tencza
Thank you.
Alderman Jette
Mr. McIntyre | looked at the State law and | couldn’t figure out the answers to these questions so since you’re here if |
could ask it. Of the amount that’s bet by the betting public, how much goes to Draft Kings? How much goes to the
location? How much goes to the Lottery Commission? How much, if any, comes to the city?
Charles Mcintyre, Executive Director of NH Lottery
So the city is really based on real estate taxes directly if | understand it correctly because that’s not my area. |
(inaudible) the math on the gambling side. So I'll address that. It’s a three-way partnership in the retail facilities
between the State, Draft Kings and the physical location. It ends up being about 40-30-30. Forty percent to the State;
thirty to the Draft Kings to run the activity, make markets, do the wagering, and then the host gets about 30 percent
give or take. It varies. We have some offsets as to promotional activities. We give —1 would call it dispensation but
we give it an offset if you do a promotion activity, we’ll deduct it from that but that’s the ratio.
Alderman Jette
What about prize money?
Charles Mcintyre, Executive Director of NH Lottery
So you’re asking how much the State makes off a say a $1,000 wager. By and large, there’s a figure known as a halt
on wages. You place a bet, there are odds that are assigned to that bet which essentially have a profit built in of
around five percent give or take. We also offer a different product which have a little higher hold. For example if you
place a bet on three teams to do the exact same thing, all win, the profit margin is a little higher on that. So give or
take, it’s about 7 percent profit on all the monies wagered in a given year but that varies by month. We lost money on
the Super bowl. We got killed. Everybody bet on Tom Brady. Everybody but we got the money during the NCAA
basketball tournament. So last year we had about $500 million wager in State on sports. Of that, that profit was
about $35 million and we split that amongst the parties. It makes sense. The math makes sense.
Alderman Jette
Okay. Thank you.
President Wilshire
Anyone else?
Alderwoman Lu
Thank you. So Mr. Mcintyre are you saying none of it goes directly to the city?
Charles Mcintyre, Executive Director of NH Lottery
I’m saying that it goes to the trust fund. All of our money goes into the trust fund.
Alderwoman Lu
| can’t hear what you’re saying.
Charles Mcintyre, Executive Director of NH Lottery
All of our money goes to the Education Trust Fund. So we don’t keep any of it. All of our profit goes to the
Educational Trust Fund and that gets directly distributed to the cities and towns.
